General Mills Could be the Lucky Charm in Your Portfolio

By Avi Salzman

General Mills (GIS) could see double-digit earnings growth in the next few quarters, pulling the stock higher, argues CLSA analyst Diane Geissler in raising her rating to Outperform from Underperform.

General Mills is launching 50 new products in the second half of fiscal 2012, and is ramping up its ad spending. That, along with lower commodity costs should light a spark under the stock, which has slid about 1% this year so far. And General Mills appears to be taking advantage of growth opportunities abroad through brands like Häagen-Dazs and Yoplait.

“Longer term, we believe significant upside exists in the emerging markets and internationally as the company continues to execute its growth plan, specifically through the expansion of Häagen-Dazs in China,” Geissler wrote.

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